Dealers are Doorway to China’s U.S. Hopes

Dealers are Doorway to China’s U.S. Hopes

August 25, 2014

Chinese construction equipment will play in the U.S. market. We’ve talked to enough of the majors and know their commitment. We know that mainstream fleets will consider Chinese brands.

Now, a report from Morningstar Institutional Equity Research substantiates what we have seen and heard this year. In fact, Morningstar cites three areas that give established manufacturers a “moat” around the U.S. market that must be overcome by the Chinese: product quality, dealer network strength, a captive financing arm.

Here is an update on how some of the major Chinese firms stand in their approach to the U.S. construction equipment market.

  • Sany has been adding dealers all year, and its parent recently announced plans to boost investment in its excavator group. The company stands on its international reputation for product quality.
  • LiuGong is continuing its push for U.S. dealers. It has partnerships with Cummins, which enhances its product quality story with a respected international component supplier.
  • XCMG has one dealer in the United States.
  • Zoomlion has one dealer in the United States.
  • SDLG, which is owned by Volvo and is being marketed as a “reliable value-priced product,” has 11 North American dealers with 51 locations.